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Sri Lanka to tax unit trusts at 10-pct for individuals

May 14, 2017 14:36 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Sri Lanka will tax profits of unit trusts (mutual funds under a specific law) at 10 percent for individuals and a higher rate for corporates at the hands of beneficiaries, Finance Minister Ravi Karunanayake said.

There was some confusion that unit trusts, which were tax free, will be taxed twice, at the level of the fund and also at the hands of beneficiaries following proposals made in last year's budget.

Finance Minister Ravi Karunanayake said while the state wanted to give a benefit for individuals who were taking a greater risk and investing in stocks, it did not want to give a tax loophole for companies to use mutual funds as a device for escaping tax.

Companies will have to pay tax at their rate of corporate tax.

Sri Lanka is planning to introduce a new income tax law soon. (Colombo/May14/2017)